Learn How to Retire Early Today, Clue: Buy More Assets!

Everybody wants to know how to retire early and live well.  To retire young, happy and rich is one of my ultimate goal in life. I want to retire at the age of 55 or earlier than that. What about you, when do you want to retire? Ate age 45, 50, 55 or at age 60 and above? What does it mean when we say “early retirement”.

Early retirement simply means leaving employment, leaving one’s job and cease to work earlier. Some people think to retirement start at age 60. We can retire anytime and enjoy the fruit of our labor at a young age.

One of the hottest question in Retirement Planning IQ.com is “how to retire early?” If you are following this blog, I already answered the question about how much money do I need to retire, read that post so that you will understand what I am talking about in this article.

How to Retire Early at Age 50 or Early as 45?

Here are the suggestions on how can you stop working for someone else and start enjoying your life. This might not be a fresh idea, but I can assure you that these ideas can help you retire young and live well.

1. Immediately open and investment account for retirement.
2. If you’re an employee, increase your contribution to your automatic savings life 401k plans.
3. Build more assets and reduce your liabilities at a young age.
4. Make more money. Get out of a job or career that are not financially rewarding.
5. Plan to retire early.
6. Acquire your retirement target earning asset as soon as possible.

If your retirement target earning asset is ten million dollars, do whatever it takes to get it and invest that ten million dollars to generate income for you. The earlier you acquired your target earning asset, the earlier you can retire, as simple as that.

Working hard is not enough to retire early. You need to invest money to make your money work hard for you. Like what I have said before, the money you invests will take your place to work for you. You don’t have to work for a lifetime, all you need is money to work for you. Investing has a big role in this part.

Image Credit: Creative Commons 2.0 by American Advisors Group – Golf Retired

If you have the plan to retire early, you can retire early. The younger you plan for your retirement, the earlier you can achieve your goal. In retirement planning, you have financial allies and those are time and compound interest.

If you started to plan your retirement at age 25 and you start investing money at age 25, your wealth will accumulate faster. Assuming you want to retire at age 45 and now you’re at age 25, this means you still have 20 years to prepare for your retirement.

In the suggested tips, “build more assets and reduce liabilities” are hard to do since you are still young and you want to enjoy your life. Maybe you plan to travel different countries, experience life’s pleasures. You need to sacrifice if you want to retire early. Instead of buying all things you want, but the things you need that something to do for your retirement.

How to Retire Early by Buying More Assets?

Assets are money making machines. These assets will take your place to work hard for you. While you are still young, build more assets and the earlier you build assets, the earlier you can retire.

Assets like paper assets (stocks, mutual fund shares, bonds), real estate properties (rental properties), and business enterprises. Instead of buying new gadgets, buy something that generates money when you retire. I prepare buying stock shares and mutual funds, because these are paper assets and purely passive income.

Paper assets like stocks and mutual funds are part of my retirement target earning assets. And these investment vehicle can help me acquire the required amount of money to retire rich.

So, starting today. Invest money for your future. Buy more assets and stop buying liabilities. The difference between the two will discuss in Retirement Planning IQ next updates. Grab this blog’s newsletter subscription by email.

Do you have any tips, suggestions and ideas on how to retire early? Leave it now in the comment box. Do not forget to share this retirement planning tips with your friends.